Amidst mixed trends from the global market, the local stock market opened flat on Monday, March 10. The 30 -share Sensex of BSE opened 142 points to open at 74,474.98. At the same time, the National Stock Exchange’s Nifty opened at 50 22,521.85.
The P/E ratio of the Sensex is less than the Dow Jones.
The evaluation of the Indian stock market has become cheaper from the US stock market after a long time due to the selling for the last five months. For the first time since 2009, the value of the Sensex-I (P/E) multiplier, Dow Jones has come below the income multiplier of industrial average. According to Bloomberg data, the Sensex is currently trading at the P/e multiplier of 21.8 times the share of income (EPS) per last 12 months, which is less than 23.8 times at the end of March last year. On the other hand, Dow Jones Industrial Average is trading at 22.4 times P/E, which is less than 22.8 times in March 2024.
Mixed trend in Asian markets
The global market remained unstable last week, while the Asian markets remained mixed on Monday. Japan’s Nikkei 225 index rose 0.3%, while the Topix index remained stable. Australia’s S&P/ASX 200 index rose 0.24%, which closed at a six -month high in the previous season. South Korea’s Kospi Index increased 0.5%. While Hong Kong’s Hangseng index fell 0.58%.
US stock market boom
Wall Street’s major index closed on Friday (March 7) with an edge after an unstable season. The S&P 500 index rose 0.55% to 5,770.20, while Nasdaq Composite rose 0.7% to 18,196.22. At the same time, Dow Jones Industrial Average increased 222.64 points (0.52%) to 42,801.72.
The direction of the market will be determined by global trends and economic data.
Ajit Mishra, Senior Vice President (Research), Railways Broking Limited, said, “The upcoming business week will be shorter due to the holidays and market participants will closely monitor global developments in the absence of major domestic events.” These factors include tariff negotiations, geopolitical tension and US dollars and crude oil prices fluctuations. “Foreign institutional investors (FIIs) have slowed down their selling in cash markets, but any change in their stance will be an important indicator for the market direction,” he said. Mishra said that the industrial production index (IIP) and Consumer Price Index (CPI) inflation data will be closely monitored on the Cast Economic Front. The stock market will be closed on the occasion of Holi on Friday.
How was the market performance in the last season?
The local stock market almost closed on the previous trading session i.e. Friday (March 7). The BSE Sensex closed down 7.51 points or 0.01% to close at 74,332.58. On the other hand, the National Stock Exchange (NSE) Nifty closed up 50 7.80 points or 0.03% to close at 22,552.50.
